Three Stocks Set to Beat the Market

Jack Hough joins MoneyBeat with three companies that affordably priced and topped earnings and revenue forecasts in the past quarter. Photo: U.S. Army.

This transcript has been automatically generated and may not be 100% accurate.

... ay ay mm mm ... talked about Wall Street analysts analysts tend to be overly optimistic bonds second half the year is coming up profit growth is slowing down ... how can you keep ahead of the crowd ... talk to Jack as I can do it at how did you say Wall Street animals and I know I've read enough to video he added things are kept in a haystack thanks Alan that's left are there ... on a column today three stocks to beat the crowd interesting stuff as always ... Mumbai I Gilligan in earnings and there's no earnings growth this quarter and when I look at the estimates for the third and fourth quarter ... nickel respect Eichler earnings growth so the there were headed for a Christmas miracle ... for those estimates have come down as we get later in the year ... adding it's probably the latter and that investors who can one be careful on stocks that are less at risk for estimate costs ... so I did was I look for for companies the recent lead the team ... both earnings and revenue estimates there are many out there but there are some ... aam wobbles are expensive so I look for ones are also mom to my surprise I found three ok ah Brumley among ... the first is AbbVie and that that's the the spinoff from Abbott Labs to wear this year that that's both have the ... you know that depend Proms the slow growth for the business but is actually up about thirty percent since end Stone very well ... aam it's a company that it does have a lot exposure exposure to some blockbuster drugs that will ultimately lose their patent of the sixteen drugs in late stage development are going to ... add to earnings over the next several years ... on the stock is preachy the dividend three point six percent so ... aam and then as being advocates modest expectations of being on ... the contest ceremony Winky I'm ... you know are ... other countries need missiles to apparently so ... we've we've seen some some pressure on defense spending here in the U S but overseas sales for Raytheon were up ten percent it has more exposure overseas than its peers ... they're also sells weapons systems that ... that day you can use on many different platforms kinds of chips and things like that ... ALM so so it beating expectations and again to get a three point one percent dividend the stock is cheaper than the broad market here and finally Group one Automotive they sell cars here in the US in the UK and Brazil ... Brazil joined portly right now but you've got a recovery in demand here in the US the UK is doing right ... discovery makes enough money from its parts and service business to cover almost all of its expenses ... for the broader Corporation so when you see an increase those new car sales ... really a lot lot more the profits floor to the bottom lines using grey Profit Growth Wally their ... stocks fell fourteen times earnings ... she told what to what extent do you think investors should not even pay attention Wall Street estimates knowing that ... they get ... going ... I'm idling the hell why pay attention estimates why not just look at the company's fundamental he I think the of the reason to pay attention as Mrs. to get a sense of what everyone else is looking at what the expectations for Wells ... in one thing the worries me we keep saying welcome to markets not too expensive right it's fifteen times this year's earnings or I may be a smidgen above its a store of it ... the problem is ... those earnings estimates are based on like this said this Christmas miracle run immediately on the year that you assume only let's say five percent earnings growth the second half ... when out of fifteen times earnings closer to seventeen times earnings and some of the market looks a little pricey so I think right now ... he wanted the course is to look for companies that ... have those modest prices that have a little operational momentum behind them ... checkout great stuff as always ...